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BUSINESS ETHICS

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What is business ethics HistoryofethicsWhatare some ofthe approaches ofdealing with

ethics Importance ofethics in business

Expertopinions Conclusion

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Ethics also known as moral philosophy is a lawphilosophy that addresses questions aboutmorality that is concepts such as good & evil,right and wrong, justice,virtue, etc.

The origin of this word isfrom ethos which mean character . It can also be

defined as the ability to distinguish between rightand wrong and to act accordingly.

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FROM WHERE THE ETHICS COMEy Religion

y Environment

y Parents & teachers

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Be honest

Have integrity

Keep your wordMaintain fidelity

Always be fair

Care for others

Respect othersBe a responsible citizen

Rigorously pursue excellence

Always be accountable

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Business ethics being part of the larger social ethics,always been affected b y the ethics of the epoch. Atdifferent epochs of the world, people, especially the elitesof the world,were blind to ethics and moralitywhichwereobviously unethical to the succeeding epoch. History ofbusiness, thus, is tainted by and through the history of

slavery history of colonialism and later b y the history ofcold war.The need for business ethics in the

current epoch had begun gaining attention since 1970s .

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Ethical decisions differ according to an individual'sperspective. Individual views the individual's perspective.Individualviews the ethical decision in his or her frame of

reference orvalue system. Hence, ethical decision do notor value system. Hence, ethical decision do not have aunique solution, but a multitude of have a uniquesolution, but a multitude of alternatives.

Decisions either ethical or unethical, have wideramifications, hence affect the other situations.

Ethicalor unethical decisions depend on individual

actions.

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Business ethics (also known as Corporate ethics) isa form of applied ethics or professional ethics that

examines ethical principles and moral or ethicalproblems that arise in a business environment. Itapplies to all aspects of business conduct and isrelevant to the conduct of individuals and businessorganizations as awhole. Applied ethics is a field ofethics that deals with ethical questions in many fieldssuch as medical, technical, legal and business ethics.

Business ethics can be both a normative and adescriptive discipline .

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In business twotypes ofethicalproblem :

Overt - bribery,theft, sabotage etc . Theyareclear & reprehensible.

covert- complex and not transparent, defy

ethical solutions .It occur in corporateacquisitions , marketing & personnel policies .

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Discussion on ethics in business is necessarybecause business can become unethical, and thereare plenty of evidences as in today on unethicalcorporate practices.

One of the conditions that

brought business ethics to the forefront is thedemise of small scale, high trust and face-to-faceenterprises and emergence of huge multinationalcorporate structures capable of drasticallyaffecting everyday lives of the masses .

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Check business malpractices.

Improve consumer confidence.

Protect other social groups.

Safeguard consumer rights and social welfare . Make businessmen conscious of social

responsibilities.

All businesses exist and operate within society and

therefore they should contribute to welfare of society.Business either big or small, much operate on ethical

grounds and discharge their social obligations to

survive in the long-run.

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Not against profit making.

Education and guidance required.

Provides basic framework.

Needs willing acceptance and enforcement.

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Utilitarianism basic premise is that an action

is judged as rightorwrong depending on theconsequences of the action.

Universalism the meansjustifythe ends ofan

action, notthe consequences.

Rights based on entitlements and unquestionable claims.

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Business Ethics: What Does It Really Mean?

Ethical Problem

Societys

Expectatio

ns ofBusiness

Ethics

Ethical

Problem

Actual

Business

Ethics

1950s Early 2000s

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BUSINESS ETHICS CYCLE

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BUISNESSETHICSLEVEL

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PANEL OF ETHICS

MANAGEMENT IN

ACOM

PANY

BOARD OF DIRECTORS - isa body ofelected or appointedmembers who jointly overseethe activities of a company ororganization .

AUDIT COMMITEE is anoperating committee of theboard of directors charged

with oversight of f inancialreporting and disclosure.

GROUP COMPLIANCE OFFICERS - implementing

written policies, procedures,and standards ofconduct .

ETHICS ADVISORY PANEL It advises on issues of legalethics and drafting ethicsopinions.

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BUSINESS ETHICS RESOURCE CENTRE- is a nonprofit, nonpartisan researchorganization, dedicated to independentresearchthatadvances high ethicalstandards and practices in public and privateinstitutions.

The Federal Energy RegulatoryCommission or FERC - is an independentagencythatregulates the interstatetransmission ofelectricity, natural gas,andoil. Italsooversees environmentalmattersrelated to natural gas and hydroelectricityprojects and othermatters;

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Against the employees:-Paying salaries lowerthan those fixed bythe govt. tothe employees.Poor working condition.

Lackofsafetymeasures for workers and lackofprovision for welfare facilities.

Against the Govt.:-Evasion ofexcise duty, sales tax, income tax etc.Smuggling ofGoods.Offering bribes to govt. officials and politicians for getting favours .

Against the consumer & society:-Adulteration ofGoods.Sale ofduplicate products.Sale ofunauthentic products.Sale ofproducts injurious topublic health.Pollution ofEnvironment.

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A decision is ethical if it is:Right- morallyrightand due

Good- brings good forall concerned

Equitable- just & equal

Proper- appropriate & acceptable

Fair- Honest & due

just- justice is done

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Survival is the name of any business game . If a companywants tosurvive it has to think about its profits . Most business operate on the

principle that profit is not linked to ethical consideration . But thereare instances which nullify the above principles. By - Johnson &Johnson.

Afirmthat is notperforming well is considered as liabilityand burdentothe society.

Thus profittodayis recognized as a characteristic ofthe success ofabusiness andjustification for its existence.

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ETHICAL LEARNING FROM BHAGWAD

GITAThe workorkarmas is driving forceoflife & this workhas to be ethical.Managers whoresortto unethicalmeans to grab the immediate resultsare successfulonlyfor shorttime like

dhuryoddan .

The lord advises thatone is born intothis life toplayhis part & whateverrole is assigned tohimhe has toperformhis duties with utmost

devotion , sincerity& humility.

If people feelthatthe organizationwhichtheyare working is unethical,theyare caught in more dilemmalikekarna faced in fight.

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ETHICS , ECONOMICS & LAW

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Limited attention to business ethics .

Unethical practices are used extensively .

Businessmen are severely criticized due to their

unethical practices .

Socially conscious and progressive businessmensupport ethical business .

Business environment in India is not favorable for

business ethics .

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The credibility of the term Business Ethics has come into question, inrecent times as business ethics is increasingly being considered anoxymoron. It is generallybelieved that business and ethics cannot coexistand organizations are said to thrive on unethical practices.

For this, the business schools of India need to be complemented by asystematic educational movement from the primaryschool level, revivingthe inculcation of the age-old moral and ethicalvalued inherent in Indian

wisdom side by side with training and modern scientific knowledge andskills. The climate in the wake of the economic scandals and the

explosions rocking the business environment calls for a fresh beginning .

Teaching business ethics is not solely about helping manager to resolve aspecific moral dilemma, but also to develop competencies or capacitiesfor, moral judgment in business contexts, the ability to integrate broadersocial issues with the managerial role and to implement this concern in a

holistic fashion.

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This researchhas shown the increasing percentage of people

whoare not committed to business ethics . Thus making theneed to teachthe business ethics .

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BRITISH AIRWAYS VS VIRGIN AIRLINESBritish airways framed a baseless story that in night club of

Richard Branson there were HIV infected needles werefound . They also hacked virgin reservation software , calledthe customers & told them flights have been cancelled &

switched them to British airways . Gillette engineer wholed the Razor blade was also

supplying the important details to its competitors .

Mumbai based Tata VSNL employee was caught whileleaking information to competitor .

SATYAM CASE .

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MILTON FRIEDMAN - Business ethics is a contestedterrain. He claim ethics is irrelevant to the field ofbusiness. He held that corporations are amoral and CEOshave only one duty: to maximize the profits of a company

VALDEMAR W. SETZER - Ethics is not definable, is notimplementable, because it is not conscious; it involves notonly our thinking, but also our feeling .

GEORGE W .BUSH At this moment , Americas highesteconomic need is higher ethical standards standardsenforced by strict laws & upheld by responsible businessleaders .

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He said In Indiayou cannotjust grow unlessyou

compromise.There is rampant corruption here & all theshortcuts & u nfair means are correct . Most of thetop corporate have set of designed values but

hardly any of themwalk their talk .Its notonlyin India but in world also.

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In ordertoWin the game ,you need toplan. Toplan ,Information is imperative . Get itthroughlegal & ethicalmeans.Its factthatto win consistently,you need toplaybyrules .

In life & business ,

ETHICAL STANDARDS MUST BE SET ,ETHICAL STANDARDS MUST BE MET.

IN LIFE PLAY HARD & PLAY FAIR!

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www.slideshare.net

www.wikipedia.orgwww.buisnessethics.com

www.citehr.com

www.authorstream.com

www.icmrindia.org

www.managementhelp.orgwww.slideworld.com

www.valuequotes.net

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THANKING YOU

BY :-Ridhima SharmaGourav Kumar